I found a 1988 260E with 128K miles that appears to be in excellent shape and very well maintained. I'm a long time Volvo owner/maintainerer and not very familiar with Mercedes Benz. I have a couple concerns I need help with before I decide to buy the car:

1. The automatic trans. shifter is marked 2-3-D which to me indicates it is a 4 speed automatic but the car shifts as if it's a 3 speed. The engine appears to shift two times from a standing stop and revs 3500 rpm at 75 mph which seems high to me, like its not going into top gear. If I pull the shifter from D to 3 however, the trans. will downshift to a lower gear.

Is it normal for a Mercedes to rev this high or might there be something wrong with the trans.

2. There is a small oil leak on the upper right front of the engine that may be coming from the top of the timing cover or front of the head gasket. Does anyone know if the leak indicates a major problem or if it's something relatively minor. I have read other posts about Mercedes Benz oil leaks and some people just accept them as normal.

3. The price is $7,000 and the car is in excellent shape with no rust or dents and except for the above, runs like new. Is there anything else, like known trouble spots, I should check for?

Thanks!
John Plut